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CTP · Question #917
CTP Question #917: Real Exam Question with Answer & Explanation
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Question
- (Topic 9) BF Company, a manufacturer of food products, reported financial information shown in the table below for the end of the year. BF Company is subject to covenants under its revolving credit facility. It is in compliance with which of the following?
Options
- AMaximum debt to tangible net worth ratio of 1.5:1
- BMinimum times interest earned of 3.0 times
- CDividends cannot exceed 15% of retained earnings
- DMinimum current ratio of 1.25:1.0
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